SULAIMANI (ESTA) — Oil prices rose on Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in U.S. oil inventories last week.
Brent crude futures gained 81 cents to $70.16 a barrel at 0925 GMT, having hit a session low of $68.63.
U.S. West Texas Intermediate (WTI) crude futures rose by 73 cents to $67.93 per barrel, after falling to $66.44 earlier on Wednesday.
“Oil … is appearing to have found support at risk appetite increase once again,” Reuters cited Ricardo Evangelista, ActivTrades analyst as saying,
“This support comes after the pronounced falls registered during the last few sessions, which were triggered by apprehension over the impact the Delta variant …, as well as the agreement between OPEC+ countries to increase production,” he added.
Oil prices dropped on Monday following a deal by OPEC+, a group including OPEC, Russia and their allies, to boost supply by 400,000 barrels per day (bpd) each month from August through December.
The sell-off was exacerbated by fears that a rise in cases of the Delta variant of the coronavirus in major markets like the United States, Britain and Japan will affect demand.
*This story was updated at 12:28 p.m. EBL time
